He understands. The big picture is becoming clearer and since Lenderama is just one more way to reach out there, I’ve got to link Brian’s post for you, here.
You must understand that the title industry, at the highest levels, has its eyes set on owning the point of sale. That means they want to control the title order, the loan application, and eventually, the listing. Yes, trust me that’s where they are headed.
Who owns the MLS platforms? Who is out there offering everybody a cheaper, faster way to do things? Who wants to make your job so simple that it eventually isn’t needed? Think about it and make choices about how and why you do what you do.
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5 responses so far ↓
1 Chris Lengquist // Jan 15, 2008 at 4:46 pm
Information without context/experience is nearly useless. Just my $.02.
2 Diane Cipa // Jan 15, 2008 at 5:31 pm
I feel that way about good service from a professional but let’s look at a plausible platform that takes the pro out of the transaction and replaces the pro with technology.
Remember that title companies compile all data from every real property transaction they touch. That means all property data and all personal data. Think of every piece of data on a 1003 and you have an idea just how much personal information they have been accumulating in those data silos.
Now, imagine all of that in data metric formulae feeding what the consumer sees when they log onto a real estate sales platform.
The system knows a lot about that person and can use that knowledge to very effectively select and market product.
Sellers can avoid having to deal with sales people and list on-line. Market analysis and help with pricing is automated.
Buyers can select properties and arrange for showings directly with the seller or if a human facilitator is needed, why not have a notary show upto perform that role.
The contracts can be handled automaticially. Loan selection, processing, all lending functions can take place in a virtual space.
The title work is automated and closing takes place in a virtual environment.
Any function that requires a human facilitator can be handled by a notary who operates without a license because they purportedly aren’t actually selliing the product or engaging in whatever licensed activity is in question.
Notaries already perform closings and take mortgage applications as remote human facilitators.
You should know that this is the world the title companies were attempting to launch before the current mortgage crisis.
First American has Lender’s Advantage and was engaged in talks with the top ten mortgage lenders capturing the entire transaction at the point of sale - title and loan processing instantly available through their software at the time of application - including automated valuation. They launched that productin all but a few states for refi deals only with the intention of moving to purchases ASAP.
The product, if successful would have disintermediated many mortgage brokers and a lot of retail operations.
There is no other reason for the title companies to have moved in and acquired MLS platforms other than an ultimate goal of control. This is how they do it. They offer faster cheaper services to lure you in, then they replace you.
I know it sounds diabolical but people in the title world understand what I am talking about.
3 Chris Lengquist // Jan 15, 2008 at 6:13 pm
Point made. But do you remember when the internet shopping first started and everyone said that would be the end of traditional retailers?
Seems to me people still seek out the shopping centers for expertise, the experience, professional advice (which can be hilarious at times), etc.
4 Rich Vosler // Jan 15, 2008 at 7:42 pm
I have to agree with Chris. Think about every time you have a problem with a product and you call the company. You get an automated system that frustrates the heck out of you or you get India and get even more frustrated.
When you’re dealing with people the best media is people. Yes, technology is great but remember that a mix of both is ideal. High tech and high touch. All tech will never fly because you’ll always have problems that require more than a notary.
5 Diane Cipa // Jan 15, 2008 at 9:12 pm
There will always be a place for some boutique providers.
The one big silver lining in the mortgage crisis of 2007 is that forensic analysis is likely to show that full automation is not a prudent way to convey and finance real property and so we have hope but in the meantime, don’t trust and don’t take candy from strangers.
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